WINTER BEEF PRODUCTION

New Zealand Journal of Agriculture, Volume 72, Issue 6, 15 June 1946, Page 553

WINTER BEEF PRODUCTION

THE high prices for prime butchers’ beef in city markets during the 1 late winter and early spring are frequently remarked on by graziers, who feel that the production of out-of-season fat cattle is an undertaking well worth considering. This article by A. T. Shannon, Field Economist, Hamilton, describes the farm management methods of suppliers to the Westfield and Frankton markets, and the study shows that there are very special factors involved in this type of production which must be appreciated fully before this business is undertaken.

AN analysis of prime bullock prices at Westfield over eleven years from 1935 to 1945, shown on the next page, provides some interesting information. Averaged over that period to illustrate the week-to-week position, prices show, on the whole, fair stability from January to the middle of July. However, a slight rise actually takes place during February, followed by a sharp decline of about £1 per head from the second sale in March. , After March there is a

gradual recovery to the middle of July, when prices regain January levels. From mid-July a steep rise in prices reaches high levels about the end of August. The period of highest prices covers eight to ten weeks until towards the end of October, and this is the principal market which winter beef producers seek to exploit. Following this period there is a steady decline to the end of the year. This eleven-year average shows that

August is the critical month, where the ability to hold cattle. an extra week or two can make all the difference between just fair prices and high prices. Also, as compared . with the fairly stable prices of the first six months of the year, an increase in prices to the extent of about 19 per cent, to 26 per cent, on the average can be expected by a producer who meets the premium eight-week period. These actual figures do not support the commonly-exaggerated impression of extra high returns for the winter beef market over a period of several years. A study, of the movement of prices for individual years, with special reference to the premium period, emphasises the limited value of speaking about what happens in the normal course of events or on the average. No producer can really count on the normal thing happening. Strangely, the movement of 1945 prices at Westfield was fairly true to type, except that the rise in fat values

was accentuated by the increases in schedule prices. In 1944 there was hardly any peak of high prices until late November to early December, about two months later than usual. The 1943 prices were remarkably stable until August, when they skyrocketed to the end of September, firmed, and crashed a month later. Unusually high prices ruled for three sales in March, 1942, and : these levels were not reached again until August, but the real high-price period did not eventuate until the end of September, and then lasted barely a month. There were no high March prices in 1941 and the premium period showed only a moderate rise. Out-of-season prices were a month earlier in 1940, but were almost on the eleven-year average in 1939. If the first half of 1938 showed most erratic price change, the second half was quite normal, and the position was the same in 1936, except that, though premium prices eased after a few sales in September, they lasted until December. On the other hand, 1937 was normal. It is probably misleading to discuss an average of eleven years, because only three years came close to the average movement of prices. Obviously the market prices from z month to month give very little clue to the probabilities six months ahead. Most cattle for fattening . are bought and held, for at least that length of time, and it is out of the question to plan for the production of prime cattle

with any. certainty as to the period or degree of premium prices. One can say only that late August and September and early October are usually the months of highest prices, and that winter beef producers will probably secure prices 19 per cent, to 26 per cent, better than for seasonal fattening. Saving Winter Grass ' The key to winter cattle production is in managing the stock

so that there is enough grass to bring the cattle to fat or forward condition by late autumn, plus a reserve for topping off in winter. This extra growth is secured mainly by reduced summer stocking, principally sheep, and for that reason it is hardly possible to have maximum fat lamb production and to fatten winter beef consistently as well. It is claimed that about two store cattle can be carried through from July to October, compared with one fattening beast. Therefore, to fatten successfully for the spring markets, the number of cattle wintered has to be kept within restricted limits and the common tendency to overstock severely curbed. Slight overstocking quite often leads to a shortage of feed, which compels quitting cattle within a week or two of the highest price period. In short, normal carrying capacity must be sacrificed sufficiently to get the best out of winter fattening. Preparation for the winter begins when the lambs are drafted and the ewes culled. The normal routine is to hard graze the breeding ewes to get them into condition for tupping, and this is the time to ensure that paddocks are reserved for cattle in the winter. There are two important considerations. The first is to avoid paddocks that may cut up severely through a winter concentration of cattle. The second is to manage the stocking so that the cattle are not fattened at the expense of the ewes during lambing. / Conditions vary in different localities. Meadow soils which develop on low-lying flats where the water table is near the surface provide good winter grazing. Areas of meadow soils are found in the Waerenga Valley, near Taupiri, and to a limited

•extent near Kiwitahi. These meadow soils poach badly in winter, and yet are remarkable for good winter and ■early spring growth of grass. Sheep are not carried to any extent because ■of. footrot, and dairying is difficult without a suitable winter run-off, but the conditions are ideal for out-of-season beef production provided the .paddocks are stocked lightly. However, it is essential for the price of the land and financial circumstances of the farmer to be in line with returns from beef cattle, otherwise a farmer may be forced into dairying under conditions that are anything but pleasant. Farms that enjoy a warm winter and early spring are well adapted to winter beef production, because there is less danger of running ewes and lambs short of spring feed. However, these farms have the alternative of early lamb production. When premium prices are offered this may be more profitable and the market more certain than for out-of-season beef. The principal producers of winter beef have been running cattle for many years. In a number of cases the circumstances of winter production in the past were rather different from the present systems of management. The common method of breaking in the land was to crop with, swedes for a season or two before sowing down to grass. After bringing cattle through the summer and autumn on rough growth, they were put on to swedes in late autumn and winter with a runoff, and finally topped off with the new pasture in early spring. With the completion of farm development cropping has practically ceased, and grassland farming is now the rule. The use of topdressing and hay feeding provided a substitute for cropping at first, but at present only a limited amount of hay is fed to the mature cattle. More reliance is placed on growth saved for the winter by lighter stocking methods, which have become possible as farmers have become more firmly established financially. Under heavier winter stocking management, up to an acre of hay is saved for every three beasts. Buying Stock A great deal of the profit from beef production depends on the successful buying of store stock. In this the larger farmer has an advantage. The size of his operations enables him to establish a wide field of connections with principal breeders and to draw to the full on the services of stock firms. Buying say 100 cattle at a time makes possible the organising of a stock drive and the exercising of per- > sonal supervision over droving, transport, and grazing. It is typical to find the largest fatteners securing 10 per cent, or less of their cattle in the

stockyards. Buying from the yards is satisfactory only when the history of the cattle is known. Smaller fatteners having to rely on this source of supply can select their stock in pen lots according to their special requirements, but costs are loaded with commission and handling charges. The opinion has been expressed that large-scale arrangements for purchasing store cattle can save up to . £ 1 a head. However, the selection and purchase of store stock is to a large• extent left in the hands of a stock agent or freezing company representative, on the strength of assured business with the fat cattle. : Though store cattle may be bought at practically any time from spring to autumn, the greatest demand is in the spring and prices are highest then. Farmers in suitable localities for early spring growth are sometimes able to buy to advantage just before the heavy demand sets in, but it is always difficult to judge store market prices in advance and decide on the best time to buy. Quite a number of springpurchased cattle will be held for winter fattening, but some producers prefer to quit them as they become fat and buy stock in the autumn suitable for marketing within the next four to six months. During ' recent years it has been usual to reckon on a net margin of profit of £2 to . £3 10s. for summer fattened cattle, and about £5 to £7 for out-of-season fattening. Most of the stores for winter fattening are bought as 2-j-year cattle or older, for mature animals will stand hardy treatment if necessary where younger stock will deteriorate in condition. There is also a preference for heifers, which appear to fatten better in winter than steers. In marked contrast to the general practice one farmer who breeds about half his cattle aims at getting stock off fat at 20 months, in addition to buying yearlings to fatten for the

winter. This policy demands adequate hay feeding and very careful attention to stock management and carrying capacity. It is essential that the young cattle have no setbacks and that there is always a reserve of grass for contingencies. Winter Fattening Principal producers agree . that only the most thriving cattle should be held over for winter fattening. When a line of stores is bought for this purpose, it pays to select the best and sell the tail ends at a loss if necessary. The small farmer will buy only forward pens of stores from the autumn sales for this reason. There is more profit in concentrating on the best cattle than in trying to fatten everything for the high-price markets. Though conditions sometimes compel it is generally considered unsatisfactory to buy in spring, quit all the fats possible in autumn, and attempt to fatten some of , the balance in winter. These will be the least thriving, and some may be so slow to fatten that the high-price market will be missed. Extra heavy prime bullocks are often marketed in the winter, but they are not ideal for the trade and will sell for less a hundred pounds than lighter beasts. With the rationing of meat, the lighter, meaty animal is preferred to the heavy fat ox. It is not possible to say what class of beast is most profitable because of the fluctuations of the store market among other factors. At present several fattened assert that Jersey-cross cattle will show the best returns because of their cheapness as stores, the shortage of winter fat cattle, and the higher carrying capacity with this stock. However, most cattle men dislike handling this poor class of beef, and there is also the likelihood that they will be the first cattle to sell at a discount on a full market.

Though the point may be subject to some discussion, it is generally admitted to be impossible to forecast accurately the weekly variations of market prices, and gambling on the market is an unsound practice. Stock agents will usually advise about the market position to the ' best of their knowledge. The most reliable policy is to provide a regular supply of fat stock to the markets, so that the bad averages out with the good. The farmer who sends only two or three trucks to the winter market risks striking unprofitably low prices each time. Westfield is often preferred to Frankton, because the larger market is less easily glutted and prices tend to remain more stable. Economics of Winter Beef The. production of winter beef as a principal undertaking is by no means as profitable as it may appear. For the man starting out, or with limited finance, the order of preference is dairying, fat lamb production, and lastly beef fattening. The majority of winter beef producers are men who are now well established financially and who have their properties freehold. They admit that it would hardly be possible to undertake this production, make a living wage, and pay interest on capital. Cattle are run because the work is congenial, labour and other requirements are a minimum, and maximum financial returns from the farm are not of paramount importance. Moreover, considerable finance is involved; reserves are essential to withstand the setbacks that are liable to occur, specially in bad seasons or periods of declining prices. The greater part of the winter beef supply comes from farms of 700 acres or more, always on goodclass flat to rolling country, the majority of which is ideal for fat lamb production or even dairying. The smaller farmer, or the man who needs to get the most out of running cattle, usually prefers to buy forward stock at all times. He holds them from four to seven monthsless if possibleand quits them fat. Thus it is more possible to adjust carrying capacity to seasonal growth than when cattle are held for a longer period. A rapid turnover of cattle, plus hay feeding- at half a ton or more a beast wintered, and the saving of pastures, appears to be the most profitable method of management. But this requires expert buying in small lots, with a careful eye to margins. An inexperienced man could readily incur severe losses. To reduce expenses it is advisable if possible to sell fat stock on the farm. To do this, satisfactory connections have to be established with particular- butchers to meet their special requirements. In this way selling and droving expenses, amount-

ing to about five per cent., may be saved. For preference a small farmer needs to be handy to principal saleyards to make a success of' winter beef production. A WAIKATO FARM One farm devoted to fat lamb and winter beef production is a 777-acre holding in the Cambridge district. About half flat to easy rolling country, and half steeper, the whole farm has been ploughed. The soil for the most part is a silt, but varies between a silty clay on the hills and a loamy silt on the flats. It is readily cultivated on all but the steeper grades. This country was once covered in bracken, fern, and manuka. During the stage of breaking in about 150 acres. a year were under the plough, and conditions were ideal for producing beef off turnips and grass. The completion of breaking in and the advent of chemical fertilisers have led to almost complete reliance on grass, for this pasture is very responsive to topdressing. Only about ten acres of crop are now grown annually for the ewes in the winter. The farm is in the shape of a hollow facing north, and is well sheltered naturally from the prevailing cold winds. Nevertheless, the farmer feels that there are insufficient shelter belts and is planting more Lawsoniana hedges, for the' absence of wind in winter is more important to fattening cattle than freedom from frost. The

lie of the land and the soil type make the farm comparatively warm in winter, and ensure a pasture growth in autumn and early spring that is not necessarily found on other farms in the district. The holding is ideally suited to winter fattening. In addition to being favoured with a suitable locality, this farmer has the benefit of accumulated family. experience, for his father also fattened cattle for the Westfield markets sixty years ago. One valuable outcome is that butchers are well aware of the circumstances in which cattle are fattened. and are prepared to bid more freely. Moreover, connections have been established with buying and selling agents, whose co-operation and advice on both store and fat cattle markets are an important side of the business. Fat Lambs or Cattle? Fat lambs are the principal source cf revenue, but the farmer has. studied the alternatives of fewer sheep and more cattle. This country could run fou? ewes to the acre with 200 cattle or fewer, but these would have to be • bought at the usual time, in spring, and sold mostly in autumn. In normal seasons, under the present system, three sheep are carried to the acre with 400 cattle, half of which are sold fat during the premium-price period from July to early November. Fortunately in this dry season cattle are down to 280. ■ - ,'

Weighing 1 up the evidence, the conclusion is reached that a high sheep-carrying, capacity with minimum cattle requirements is possibly more profitable, but present arrangements come closer to ideal farming. The pastures reach a higher standard and are healthier for both sheep and cattle. Improved consolidation because of cattle tramping is a further consideration, and altogether the farm is maintained in great heart. To what extent this affects net return is not easy to suggest. On the other hand, there are additional expenses caused by damage to fences, gates, bridges, and ditches. Store cattle are bought earlyjust before the main demand in spring sets in. This policy is possible because of the early spring growth, and results in a saving of possibly 10s. a head on prices ruling a fortnight or so later. Most stock are bought on the paddock from the Gisborne districts or the King Country in preference to the stockyards, though special lines .of store cattle at nearby sales may be bought at any time during the growing season. A useful point in buying East Coast cattle is that the normal drive of six weeks can be slowed down, or the stock even grazed out, till it is more convenient to receive them on the farm. Till the lambs are got away the sheep have priority on the pastures, cattle being brought in only where it is necessary to control rank growth. About January drafts of cattle are brought on to the better paddocks for fattening, and -are quitted from about March onward. Usually there are three drafts of up to 60 each, and the cattle are run at this stage at about a beast to the acre or better. Advanage is taken of autumn growth to topdress and shut up paddocks for winter fattening. After grazing these paddocks will mostly be kept for lambing, in the case of the handiest, and later for ewes and lambs, and will show first-class spring growth. The steady reduction of fattening cattle numbers by August fits in well with lambing requirements. In general, the policy is to bring the cattle for the winter market up to very forward condition by autumn and then to hold or increase their weights till they are sold. During the winter fattening is confined to the warmer, more sheltered flats where there is some pasture growth even at this period, but carrying capacity of the fattening drafts is' down to almost a beast to two acres. At a later stage a few twin lambs may be run with these cattle. Each year about 2,000 bales of hay are saved for feeding mainly to the store-conditioned stock till September, these cattle being grazed harder on some of the rougher areas. Careful

attention has to be given to stock management so that the'question will never arise of stinting sheep for the benefit of cattle or vice versa. When lambs require the best grass the cattle are on hills at the back of the farm, and in autumn and winter the ewes are off the cattle-fattening paddocks. There is one paddock on the flat on which ewes and lambs consistently fail to thrive for no apparent reason. It is grazed only by cattle and may be cut for hay. Having roughly half the farm devoted to cattle for one part of the year and to sheep for the other part serves to keep parasitic infestation to a minimum, and is a valuable contribution to stock health. Variety of Topdressing Liberal topdressing in past years has resulted in the maintenance of a good pasture sward, and the aim has been to cover at least two-thirds of the farm each year with 3 to 4cwt. of fertiliser. In endeavouring to vary the class of topdressing from year to year, careful records are kept of the treatment of each paddock. Superphosphate, bonedust, basic slag, compounded slag, serpentine superphosphate, and Seychelles guano have been used. Recent pasture mixtures at 311 b. to the acre have contained 141 b. of

cocksfoot, partly as an experiment to control eczema should that possibility arise. Careful attention to topdressing and pasture management is obviously important in exploiting the early growth conditions. ! That beef production is liable to wide variation in profits from season to season is borne out by this farmer’s figures. Though these do not allow for some changes in the stock numbers on - hand, net returns (the difference between purchase and sale price, less commission, transport, and drovers’ charges) for three recent seasons are £639, £1,649, and £2,065. This is only one aspect of an undertaking which obviously must be considered from many different angles before the decision is made to launch, out on extensive winter fattening. Because this class of enterprise is not normal to the usual run of farming conditions, it is clear that particular requirements of finance, farm management, stock experience, and locality are essential to cater for the specialised out-of-season beef markets. If there were not the few men fortunately placed in these respects, winter beef would be in even shorter supply than it is at present.